Economic Models Omit Many Details to Allow Us to See

question 114

True/False

Economic models omit many details to allow us to see what is truly important.

---

Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade and investments.

Gain

The financial profit obtained when the selling price of an asset exceeds its purchase price.

Euros

The official currency of the Eurozone, which consists of 19 of the 27 European Union member states.

Comprehensive Income

Comprehensive income is the total change in equity for a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including all non-owner changes in equity such as unrealized gains and losses on investments.